Candlestick wick explained

00:00 In this animation, we will look at the shadows, or the wick of a candlestick. Typically , shadows on the top of a candle stick is the upper shadow.

It signifies ,the high of the session. While the shadows on the bottom is the lower shadow

It signifies, the low of the session .These shadows are formed , due to battle between bulls and bears. It also provides important signal, during a trading session.Now ,lets watch how shadows are formed.

00:32 Our Candlestick stars with Open price session. The bulls , managed the take control of the market. Pushing the price higher .The market is now overbought , for some reasons, Seller came it and dominate the market

The sellers , managed to push the price below the open price. Causing a long shadow, to form, at the top of the candlestick

01:03 Not only that, the candle is now turned into a bear candle, with price below the opening price .Before the candlestick closes, some bull returned, and push the price slightly higher ,but not enough for the candle to become bullish. This created a lower shadow on the bottom of the candlestick

01:33 If the Upper shadow is much longer than the lower shadow, this signifies that the candle is bearish.

A candle with lower long shadows , is exactly the opposite of our previous example. We start the candle with bears having control of the market

01:44 The bears managed to push the price far down .Until the bulls came in , and bought everything the bears sold .This created a very long, lower shadow on the bottom of the candlestick

The bulls managed to push the price higher , than the open price . Some sellers came in, forming a short wick at the top of the candlestick

The candlestick closes / A candlestick with long lower wick ,signifies bulls pushing price and dominating the market